The rupee was trading lower by 42 paise at 7.67 against the US dollar in early trade on Tuesday as the American currency strengthened overseas amid a lower opening of the domestic equity market.

A file photo of the Bombay Stock Exchange (BSE).

Mumbai: The rupee was trading lower by 42 paise at 7.67 against the US dollar in early trade on Tuesday as the American currency strengthened overseas amid a lower opening of the domestic equity market.

Forex dealers said continued demand for the American unit from importers and the greenback's persistent gains against other Asian currencies since Donald Trump's unexpected win in the US presidential election on November 8, putting pressure on the rupee.

On Friday, the rupee had lost 62 paise to end at over three-month low level of 67.25 against the American currency on fears of capital outflows amid resurgent dollar overseas.

Forex market remained closed on Monday on account of 'Guru Nanak Jayanti'.

Meanwhile, the benchmark BSE Sensex plunged by 344.27 points, or 1.28 per cent, to 26,474.55 in early trade on Tuesday.